Oct. 23--Fears of a global recession and its potential effect on corporate earnings helped send the Dow Jones industrials on a 514-point descent Wednesday.

The Dow sank 5.69% while the Standard & Poor's 500 took an even bigger percentage dive -- 6.10% -- as investors saw little they liked in the economic crystal ball. The S&P dropped to its lowest level since 2003.

"There is no real compelling reason for positiveness right now," said George Reis, president of Two Rivers-based George V. Reis Investment Group.

Wednesday's sell-off reflected worries that a recession, which more and more economists are concluding started at the beginning of the year, will last well into next year.

"Certainly the concern now is squarely on the economy and how deep the recession is going to be and how long," said Bruce Bittles, chief investment strategist for Milwaukee's Robert W. Baird & Co.

While analysts remain steadfast in their belief that stocks will rebound at some point, they said volatile days like Wednesday are to be expected in a bear market.

The Dow tumbled 514.45 to close at 8519.21 Wednesday. The S&P lost 58.27 points to close at 896.78, while the Nasdaq Composite Index fell 80.93, about 4.8%, to 1615.75.

The Dow still finished above its Oct. 10 low of 8451.

"Once you make a panic bottom like we thought we made two weeks ago, the market typically has a strong rally, which we had, and then it goes into a testing phase to see how low really is the low," Bittles said. "I think the action we're seeing is part of that process, including today."

Predictions of weak corporate profits, a jump in the dollar and falling commodity prices were indicators to investors that there will be a worldwide economic slowdown even if action taken by federal regulators gets credit markets flowing normally again.

Sara J. Walker, senior vice president and investment officer for Associated Wealth Management in Milwaukee, said business and consumer lending is tighter because banks, which have been hammered in the financial crisis, remain very cautious. Less bank lending translates to less growth in the economy as companies and consumers are forced to cut back.

"Every bank is kind of looking back and reviewing all their loan decisions, and they want things to be tighter," Walker said.

A company that may want to tap its line of credit with a bank could find it isn't available any longer or that it's going to cost more, she said. So costs go up at a time when sales are weakening, the company looks to trim expenses.

"Then you get layoffs," Walker said.

Reis agreed.